The Infrastructure Gap in Latin America and the Caribbean

Despite progress in Latin America and the Caribbean over the past two decades,
the region’s many challenges—economic, social, and environmental— have been
laid bare by the COVID-19 pandemic. Worldwide, the path toward sustainable de-
velopment is fraught with barriers. Attaining the Sustainable Development Goals
(SDGs) requires societies and policymakers to decide how to promote growth, re-
duce inequality, and protect the environment. While it is difficult to establish goals
in this context, it is also unavoidable. A secure and more inclusive future depends
on it. In this sense, the SDGs, established in 2015 by the UN serve to guide coun-
tries along the path to development, while balancing the various and sometimes
conflicting goals.
The Inter-American Development Bank (IDB), in its 2025 Vision, laid down some
guiding principles and priorities in line with the SDGs. These seek to promote
sustainable and inclusive economic growth. Guaranteeing access to infrastructure
capable of providing sustainable and quality services to the region’s households
and firms is a necessary condition for building a dynamic and digitalized economy
which, in turn, can create opportunities for innovation and growth –especially for
small and medium firms– and foster the inclusion of vulnerable and low-income
populations. In addition, high-quality infrastructure permits the region’s integra-
tion in continental and global value chains.